Cappa would not say if the eight-speed will be used in any Fiat-branded vehicles.

Chrysler will license the technology from ZF, a German automotive parts manufacturer. The carmaker's facility upgrade will not be completed until 2013, and until that time it will purchase the German-made transmissions directly from ZF.

Overall, the move will help Chrysler achieve a fleetwide 25 percent fuel economy improvement by 2014. Chrysler is the first domestic automaker to announce the use of an eight-speed transmission and hint that it could be implemented in a wide range of vehicles. BMW and Lexus currently offer the advanced technology in a couple of their sedans, and Audi recently announced plans to replace the six-speed transmission in most of its cars with ZF's eight-speed.